Energy Star Information
Federal Tax Credits for efficient windows, skylights, and patio doors have changed significantly as of January 1, 2023, as part of the Inflation Reduction Act of 2022. Because the IRS has not yet issued detailed guidance on which products qualify for tax credits, Duncan’s Window & Door strongly recommends consulting with a tax advisor and/or the IRS to determine whether specific products and applications may qualify for tax credits.
Key Updates to the Federal Tax Credits
Credit may be available under Section 25C of the Internal Revenue Code for qualifying products purchased and installed during the tax year.
Tax credit applies to the cost of the product only. The credit does not include installation costs.
As of 1/1/2023, the tax credit is up to 30% of the amount paid, subject to the maximums listed below:
• $1,200 total annual tax credit for any and all improvements, including other eligible items as listed in Section 25C of the Internal Revenue Code. • $600 total annual maximum tax credit for qualifying windows and skylights. • $250 total annual maximum tax credit for a single qualifying exterior door. • $500 total annual maximum tax credit for all qualifying exterior doors combined.
Product Qualification Criteria
Windows and Skylights
As of 1/1/2023, windows and skylights must meet ENERGY STAR Most Efficient criteria to qualify for tax credits under Section 25C. For more information about the ENERGY STAR Most Efficient program and requirements by product and climate zone, visit the EPA ENERGY STAR
website.
Exterior Doors As of 1/1/2023, doors must meet the ENERGY STAR criteria applicable to the climate zone in which the products are installed. For more information about ENERGY STAR Version 7.0 and requirements by climate zone, visit the ENERGY STAR website.
Learn more about ENERGY STAR at www.energystar.gov (http://www.energystar.gov/) or call (888) STAR-YES (888-782-7937).
How to Qualify for the Tax Credit
Purchase and install qualifying windows or patio doors beginning January 1, 2023 through December 31, 2032. Verify eligibility with performance values on the NFRC label.
Save your paid sales receipt with your tax documents.
Save your product performance labels showing the NFRC U-Factor ratings and SHGC from your window(s) or door(s), or take a photo of the labels and keep it with your tax documents. Duncan’s Window & Door does not reprint product labels for tax credit verification.
Disclaimer
This is a summary of certain tax credit elements related to windows, skylights, and doors as set forth in Section 25C of the Internal Revenue Code as modified by the Inflation Reduction Act of 2022, Public Law No. 117-169, signed into law on August 16, 2022. The Act extends current tax credits with amendments for eligible property purchased and installed through December 31, 2032.
Duncan’s Window & Door bears no responsibility for determining whether a particular purchase or application qualifies for a tax credit. Duncan’s Window & Door does not provide legal or tax advice. Customers should consult their own tax advisor and/or the IRS to determine whether products purchased for a particular application qualify for the tax credit.